CryptoNews

Court Approves BTC Loan for Bankrupt Bitcoin Mining Firm

Rhodium Encore LLC, a bankrupt bitcoin mining company, has received court approval for a unique debtor-in-possession financing plan that allows borrowing in either U.S. dollars or bitcoin. Galaxy Digital Holdings Ltd., a blockchain firm led by Mike Novogratz, has offered to provide Rhodium with a loan of either $30 million in dollars or 500 bitcoin. The dollar loan carries a 14.5% interest rate, while the bitcoin loan has a 9.5% interest rate. Rhodium Encore can repay the BTC loan in dollars at a reasonable market rate at closing. This type of cryptocurrency-based funding is rare in Chapter 11 bankruptcies due to bitcoin’s volatility. They filed for bankruptcy in August 2024, primarily due to financial issues stemming from a dispute with its landlord and power supplier, Whinstone US Inc., which was later acquired by Rhodium’s competitor, Riot Platforms.

Source: Bitcoin

Related posts
AI & RoboticsNews

DeepSeek’s first reasoning model R1-Lite-Preview turns heads, beating OpenAI o1 performance

AI & RoboticsNews

Snowflake beats Databricks to integrating Claude 3.5 directly

AI & RoboticsNews

OpenScholar: The open-source A.I. that’s outperforming GPT-4o in scientific research

DefenseNews

US Army fires Precision Strike Missile in salvo shot for first time

Sign up for our Newsletter and
stay informed!